Why Offering Top Talent Top Dollar Is Smart In 2014
The years 2007 to 2013 were an employers’ hiring market. For example, In 2010, FoodProcessing.com’s Fourth Annual Salary and Job Satisfaction Survey of over 1,600 professionals in the food and beverage industry reported that the average pay in the food & beverage industry declined by 6.3% – the lowest average since the survey started in 2007.
Now that the economy is on more stable ground, the tables are starting to turn. Which is why offering a top food and beverage industry candidate top dollar in 2014 is in an employer’s best interest.
For example, in November, 2013, Bloomberg TV reported that one company, Alibaba, is paying new recruits 3 times what they offered last year to get the best possible talent.
Further, Matt Ferguson, CEO of CareerBuilder stated in this 1/2/2014 blog titled 7 Trends To Watch At Work in 2014 that “as the year came to a close, the economy showed signs of improvement that should continue into 2014. The housing sector is rebounding, the stock market has hit new highs, consumer spending is up and unemployment is at its lowest in five years. Employers are cautiously optimistic that 2014 will bring a stronger job market, but they aren’t ready to commit to upping their staff until the outcomes of debt negotiations and other issues affecting economic expansion are clearer.”
To Ferguon’s point, # 7 in his blog focuses on compensation for more competitive and specialized/in-demand positions. He says, “In order for companies to find and retain the best talent, they’ll need to offer competitive compensation, especially for in-demand or hard-to-fill positions. Sales and IT – the top two positions companies plan to hire for in the New Year – are also where employers expect to provide the biggest salary increases. When it comes to high-skill roles, 26 percent of employers plan to raise starting salaries for these specialized positions in 2014. Looking across positions within an organization, 73 percent of employers expect to increase compensation for existing employees – on par with last year – while 49 percent will offer higher starting salaries for new employees – up from 47 percent last year.”
Employers looking to hire top talent in 2014 will have to compete with the candidate’s current employer seeking to retain their talent with raises and counter offers.
Does your company hiring plans this year include offering higher starting salaries? Why or why not? Leave us a comment below.